In capitalist economic theory, employment is a transaction in which the employer buys the labor of the employees and the employees sell their labor to the employer. Hence the term labor market. It is assumed in economic transactions that both will seek the best deal. Unions create the best deal for the resource-employees. Unions function to equalize the power of the company over the employee. Short of outsourcing, companies cannot function without any resource-workers at all. If the company is unionized, then all the workers as a group have bargaining power that a solitary worker does not
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